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Cost behavior refers to ________. whether a particular expense is expensed in the same or the following period how costs react to a change in the level of activity whether a cost is incurred in a manufacturing, merchandising, or service company classifying costs as either perpetual or period costs

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sebastiansierraocm

Answer:

How costs react to a change in the level of activity

Explanation:

Cost behaviour is a concept, and a classification criteria, that refers to the level of change that a particular cost has after a change in overall activity.

There are three types of costs according to the cost behaviour:

  • Fixed costs: which do not change according to the level of activity.
  • Variable costs: which do change according to the level of activity.
  • Mixed costs: which change partially according to the level of activity, or change in some circumstances, while in others do not.

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